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At the start of the year, you invest $2,000 in fund A. To invest in fund A, you have to pay 4% of your initial
At the start of the year, you invest $2,000 in fund A. To invest in fund A, you have to pay 4% of your initial wealth as commissions (called front-end loads). During the year, the fund NAV increases from $4 to $4.4. If the expense ratio amounts to 2% per year, what is the annual growth rate of your wealth?
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